Tax figures and budget share of oil industry in Albania

The tax share to GDP from oil and gas extractive industry account in a variable percentage from 1.4% to 1.5%.

The payments of taxes and social contributions to govern budget revenues account in an average of 7.7% of tax and customs revenues, and a share as of 5.8% of total tax revenues.

The royalty tax has a share as of 10% of national taxes, and an average of 1.2% of tax and custom revenues. VAT has a share as of 2% of total VAT collected by budget, and an average of 0.9% of tax and custom revenues. Corporate Income Tax has a share as of 10.1% of corporate income tax collected by budget, and an average of 1.1% of tax and custom revenues. The labor account for an average of 5.3% of labor taxes collected by budget, and an average of 1.5% of tax and custom revenues. The other taxes and dues account for an average of 3% of average of tax and custom revenues.

Payroll taxes including social and health security and personal income tax comprise the main revenue stream contributed to the government budget.

Royalty comprises the main revenue stream contributed by the extractive sectors of oil and gas to the government budget.

Share of oil production is the second largest revenue stream collected from the oil sector. Private oil companies collectively transferred in kind the share of oil production in last year’s 50 – 55 thousand tons.

Other taxes include the taxes collected by the Albanian Customs Administration including VAT paid on imports, carbon tax, excise tax, circulation tax and other custom import duties. These flows are included because they are reported as material flows by the licenses and are part of the reconciliation. However, VAT collected on imports is partially or fully refunded to the operating licensees based on certain criteria and additional data are required to conclude on the total government’s revenue from the sectors in focus[1].

[1] AlbEITI Report 2016